A company that handles deliveries for other companies and individuals (you can use Yurtici or Aras...

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Operations Management

A company that handles deliveries for other companies andindividuals (you can use Yurtici or Aras Kargo as examples)considers to implement a new system for managing their trucks.Currently, the drivers get a fixed order of destinations, deliverthe packages and get a signature on a paper slip. They hand in theslips in the evening to their manager. The manager checks againstthe orders, and approves that deliveries have been made. With thenew system, the drivers have a hand-held device connected totraffic information, and an information system that changes theroute dynamically to avoid traffic jams. Also the customers signwith a pen on the hand-held device, if a signature has been done,the delivery is marked as completed automatically.

You should try to identify all possible factors both forbenefits and costs. In the business case, describe all of them, andtry to quantify them, detailing how this quantification could havehappened (actual numbers can be guessed at or made up, like forexample hardware costs). Based on this quantification, aggregatethe results for costs and benefits over an adequate time intervaland give an overall assessment and recommendation. You can alsoinclude intangible benefits and strategic considerations in yourfinal recommendation.

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Identifying cost and benefits The essential classifications that costs and benefits fall into are directindirect tangibleintangible and real Direct costs are regularly connected with the creation of a cost object item administration client undertaking or movement Indirect costs are typically fixed in nature and may originate from the overhead of an    See Answer
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